VANCOUVER (NEWS 1130) — Calling it a deal that “makes sense,” federal Finance Minister Bill Morneau touted Canada’s new trade deal with the US and Mexico, despite uncertainty about steel and aluminum tariffs, softwood lumber and aid to irate dairy farmers.
Speaking to the Greater Vancouver Board of Trade (GVBOT) Tuesday, Morneau says the United States-Mexico-Canada Agreement (USMCA) offers stability and confidence to Canadian businesses, but was unable to provide estimates on how much it will impact the country’s economy.
“I’m not in any way in agreement with people who are saying that there’s any problem with the agreement,” he said, adding Canadians will see ‘firm specific impacts’ trickle down. “You saw yesterday that auto part companies, all their shares went up as they saw a greater sense of optimism. That will allow them to have more potential investments both in Canada and other North American countries.”
Tariffs on steel and aluminum stay intact
Under the new deal, tariffs on Canadian steel and aluminum imposed by the U.S. last spring will continue.
Morneau admits Ottawa was unable to reach a firm deal the tariffs and softwood lumber, a major B.C. industry, before Monday’s U.S. imposed deadline. He says he is “cautiously optimistic” the two countries will reach an agreement, but did not provide specifics on what it may entail or when it may be reached.
He says Canada will work to protect local industries from U.S. producers flooding the market with steel and aluminum.
Questions still linger around promised aid to dairy farmers and the exact effects Ottawa predicts will impact the industry. Under the new agreement, American dairy producers will gain access to 3.59 per cent of Canada’s market, slightly higher than the 3.2 per cent under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Morneau says Canadian farmers will be compensated.
“As we’re right now doing the analysis, I’m not going to be able to give the actual numerical impact,” he said.
Morneau pointed out the new deal means Canada is now the only country to have deals with all other G7 members, but work will continue to diversify trade with other nations. He specifically named China as one area of particular interest for Canada.
Patents on drugs extended
USMCA will also extend the patents for biologic drugs to 10 years, up from eight. The often-expensive drugs are used to treat a wide range of diseases including cancers, arthritis and multiple sclerosis and could end up costing Canadians.
“The longer period will have some impact on generic drug market,” Morneau said. “We’re looking at other ways that we can create cost efficiency in that sector. We’re looking at the approach to bulk buying, more national approach to pharma care.”
Morneau says, however, the extension may encourage companies to develop new drugs to make a profit from for a longer period of time.
During a discussion with GVBOT president Iain Black, Morneau said Ottawa also recognizes Canadians are “broadly frustrated” by interprovincial trade barriers.
He said the issue will be an area of focus at the next First Minister meeting, where he hopes to “try and choose one of two places where we will have the single biggest impact on that issue.”
The post Morneau touts USMCA, despite gaps appeared first on NEWS 1130.